Flowserve Corporation (FLS)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,277,980 | 3,600,590 | 3,412,060 | 3,653,870 | 3,909,500 |
| Total assets | US$ in thousands | 5,108,720 | 4,790,630 | 4,749,770 | 5,314,680 | 4,938,280 |
| Total asset turnover | 0.84 | 0.75 | 0.72 | 0.69 | 0.79 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $4,277,980K ÷ $5,108,720K
= 0.84
Flowserve Corp.'s total asset turnover has fluctuated over the past five years. The company's total asset turnover ratio ranged from 0.70 in 2020 to 0.85 in 2023, indicating that, on average, the company generated 0.70 to 0.85 in sales for every dollar of assets held during these years.
The increasing trend in total asset turnover from 2020 to 2023 suggests that Flowserve became more efficient in generating sales relative to its total assets during this period. This improvement may be attributed to effective asset management, operational efficiencies, or strategic decisions that boosted revenue generation compared to the investment in assets.
However, the fluctuations in the total asset turnover ratio indicate that there may have been variations in the company's asset utilization and sales generation efficiency over the years. It is important for Flowserve to continue monitoring and enhancing its asset turnover ratio to ensure optimal utilization of assets and improved overall financial performance.
Peer comparison
Dec 31, 2023